Outline of the AEP process

There are up to four stages of an AEP investigation:

Initial enquiries: these are conducted by the Case Examiner and may result in a referral to the FRC’s Conduct Committee to decide whether the matter should be referred to the FRC’s Executive Counsel to investigate. The Conduct Committee will also decide whether the fact of an investigation is to be published.

Investigation: the Executive Counsel’s investigation will be conducted by an in-house team of lawyers and forensic accountants, culminating in an Investigation Report. The investigation may be overseen by a Case Management Committee. At the conclusion of the investigation, the Executive Counsel will issue a Decision Notice which will set out any Adverse Findings and a proposed sanction. If the findings and sanction are accepted by the investigation subject, the process will end there. Publication of sanctions issued is mandatory.

Enforcement Committee: if the matter is not concluded at the Investigation stage, then it may be referred to the Enforcement Committee to reach a decision on the findings and sanction. In some circumstances a case can go direct from the investigation stage to a Tribunal.

Tribunal: where a case has been referred directly to a Tribunal (circumventing the Enforcement Committee) or referred from the Enforcement Committee in cases where a Respondent rejects parts or all of the Enforcement Committee’s Decision Notice, a Tribunal will hear the case. It should be noted that a Tribunal is not bound by any earlier Decision Notices (unless parties agree otherwise). A Tribunal will announce its findings and, where an Adverse Finding has been made, it may impose a sanction against the Respondent following any further evidence and submissions.